New Issue

See: IPO. See: Primary Market.

It's like the financial market equivalent of a new kid in school...or that up-and-coming singer who just released her first single. A new issue is just what it sounds like: a stock (or other security) getting sold to the public for the first time. Or, you could say: newly issued.

Companies raise money in various ways. They can borrow from a bank or other source (which doesn't really play a role here). Or they can bring in cash by selling bonds or stock. Bonds represent debt; the company selling them is borrowing money that they will pay back at interest. Meanwhile, shares of stock equate to tiny ownership stakes in the company. Either of these can become new issues when they're made public for the first time.